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Labour's financial dependence on the trade unions has been exaggerated

Just 25 per cent of the party's funding so far this year has come from affiliated unions, with party members donating most.

Unite general secretary Len McCluskey. Photograph: Getty Images.

The GMB's decision to cut its affiliation fees to Labour from £1.2m to £150,000, in advance of Ed Miliband's plan to introduce an opt-in system for trade union members, has refocused attention on the party's relationship with the unions.

Judging by David Cameron's rhetoric, it would be easy to believe that Labour is entirely dependent on them for funding. But while it's true that the latest Electoral Commission figures show that affiliated unions were responsible for 77 per cent (£2.4m) of all donations to the party in Quarter Two, the true picture is more complex. 

The Electoral Commission doesn't publish donations below £7,500, so the funding Labour receives from its 187,537 members isn't included. In reality, as the table below shows, just 25 per cent of Labour funding so far this year has come from affiliated unions, with 29 per cent from members' subs, 22 per cent from grants and 25 per cent from fundraising and commercial sources. 

Labour will certainly suffer a major funding hit from Miliband's union reforms. The party expects around 10 per cent of the existing 2.7 million levy-payers to opt-in, which would reduce the amount it receives in affiliation fees from £8m to around £1m (although it is likely to increase the annual £3 payment). But its dependence on the unions has been much exaggerated.